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My client who went to Bank of America to open a bank account for his LLC owned by his revocable living trust that he signed digitally sent me an email that said:

“I just went to Bank of America and they refused to open my bank account because [the trust was] not notarized. I showed them the statute from your help document for that exact situation and they didn’t seem to care and said it was per policy that they can’t accept the electronic signature.”

Because I know Bank of America, Wells Fargo, and Chase employ idiots, I give the…
Continue Reading Bank of America Ignores Arizona Law

In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.
On Tuesday, December 3, 2024, in the case of Texas Top Cop Shop, Inc., et al. v. Garland, et al., No. 4:24-cv-00478 (E.D. Tex.), the U.S. District Court for the Eastern District of Texas, Sherman Division, issued an order granting a nationwide preliminary injunction. Texas Top Cop Shop is only one of several…
Continue Reading FinCEN Beneficial Owner Information Report Filings Stayed

The U.S. Bureau of Labor Statistics published its Consumer Price Index report on September 11, 2024, that says Arizona’s mimimum wage effective January 1, 2025 will be $14.70 an hour. The 2024 minimum wage is $14.35 an hour.  The 35-cent minimum wage increase is directly tied to the latest CPI report, which showed a 2.5% increase in inflation from August 2023 to August 2024.
The post Arizona Increases Its Minimum Wage to $14.70/Hour in 2025 appeared first on Arizona LLC Law.
Continue Reading Arizona Increases Its Minimum Wage to $14.70/Hour in 2025

A distribution from a limited liability company (LLC) is a payment of cash or property made by an LLC to the LLC’s owners, also known as members. Although state law sets forth certain default rules, LLC members can specify in the LLC’s operating agreement when and how profits are allocated, distributed, and taxed.
Distribution Method and Timing
Under the default rules provided by most state LLC statutes, an LLC is not required to make any distributions to members before they withdraw from the LLC or it is dissolved. It is prudent for LLC members to create an operating agreement that…
Continue Reading What Is an LLC Distribution?

Question:  I am completing IRS Form W-9, Request for Taxpayer Identification Number and Certification.  Line 1 says “Name of entity/individual.”  I am completing the W-9 for my single-member LLC.  What do I put in line 1?
Answer:  For a sole proprietor or disregarded entity, enter the owner’s name on line 1, and enter the business/disregarded entity’s name on line 2.
The post Do I Put My LLC’s Name on Line 1 of an IRS Form W-9 appeared first on Arizona LLC Law.
Continue Reading Do I Put My LLC’s Name on Line 1 of an IRS Form W-9

Minnesota copyright attorney Christopher T. Porter discusses the United States Supreme Court decision in Warner Chappell Music, Inc. v. Nealy. Call 612.455.6218.
Continue Reading Warner Chappell Music, Inc. v. Nealy – U.S. Supreme Court Holds Copyright Act Places No Time Limit on Infringement Damages

The following is the text of an email I got from Tanya M. Gibson, Director, Corporations Division of the Arizona Corporation Commission on May 1, 2024:

Hi, All! It has been a while since I have reached out. I hope everyone is well and staying cool!
I have good news to share! We have secured a vendor for our new filing system! Yes, we are replacing eCorp. We are excited because the new system is technologically advanced and offers a great deal of features and functionality that will enhance the customer experience, streamline filings, and better protect against fraudulent filings.
Continue Reading Arizona Corporation Commission is Making a New Website

Question: People frequently ask me why they should hire me, Richard Keyt, an Arizona LLC attorney who has formed 9,400+ AZ LLCs, to form their Arizona limited liability company instead of a non-law firm company I’ll call the “Nonlawyer LLC.”
Answer: People should hire me to form their AZ LLC for the following reasons:

  • I Don’t Require You to be Legally Bound to 56 Pages of Legal Contracts: Unlike Nonlawyer LLC I don’t require people to enter into any contracts to hire me to form an LLC.  Nonlawyer LLC requires its LLC customers to agree to 56 pages of

…
Continue Reading Don’t Pay a Non-Lawyer More than an Arizona LLC Attorney to Form an Arizona LLC

The following is a March 4, 2024, news item on FinCEN’s website:
On March 1, 2024, in the case of National Small Business United v. Yellen, No. 5:22-cv-01448 (N.D. Ala.), a federal district court in the Northern District of Alabama, Northeastern Division, entered a final declaratory judgment, concluding that the Corporate Transparency Act exceeds the Constitution’s limits on Congress’s power and enjoining the Department of the Treasury and FinCEN from enforcing the Corporate Transparency Act against the plaintiffs. FinCEN will comply with the court’s order for as long as it remains in effect. As a result, the government is not currently…
Continue Reading Federal District Court Rules Corporate Transparency Act Unconstitutional

Question:  Can my lender call my loan that encumbers my land if I transfer the land to an LLC I own?
Answer:  Probably not.  The Federal National Mortgage Association, aka Fannie Mae, has something called Servicing Freddie Mac Mortgages Series 8000.  Section 8406.4(b) Additional permitted Transfers of Ownership Effective 10/20/2021 states:
“Permitted Transfers of Ownership subject to conditions.  In situations where all of the following conditions are met, Freddie Mac will permit a Transfer of Ownership of the Mortgaged Premises:

  • At least 12 months have passed since the Origination Date and
  • The transfer is to a limited liability company (LLC) or limited partnership (LP), provided

…
Continue Reading Loan Can’t be Called if Land Is Transferred to an LLC